UPES

*UPES

Jul 2012

*PLANNING

Jul 2012

Task Number One Of Management

Determination Of Future Course Of Action

Intellectual Process

Process Of Thinking Before Doing

Decision Making Process

Precedes All Managerial Functions

Refers To Policy Formulation And Establishment Of Goals

Deciding In Advance What To Do, When And How To Do It

Foundation Of Management

Jul 2012

*DEFINITIONS

“Planning Is Deciding In Advance What Is To Be Done. It

Involves Selection Of Objectives, Policies, Procedures

And Programmes From Among Alternatives.”

“Planning Is An Intellectual Process, The Conscious

Determination Of Future Courses Of Action, The Base Of

Decisions On Purpose, Acts And Considered Estimates”—

Koontz & O’Donnell.

Jul 2012

*DEFINITIONS

“Management planning involves the development of

forecasts, objectives, policies, programmes, procedures,

schedules desired results”—Louis A. Allen

“Planning is deciding in the present what to do in future.

It is the process whereby companies reconcile their

resources with their objectives and opportunities”—

Philip Kotler

Jul 2012

*SIX P’S OF PLANNING

PURPOSE

PHILOSOPHY

PROMISES

PLANS

POLICY

PRIORITY

Jul 2012

* SIX P’S OF PLANNING

PURPOSE—Goals should be verifiable so that wecan check it

PHILOSOPHY—ideology

PROMISES—uniting factor

PLANS—manager has to ascertain the goals,actions to achieve goals, requirement ofresources, sources of resources

POLICY—general guidelines on whichmanagement can take decision

PRIORITY—Needs

Jul 2012

*NATURE/CHARACTERISTICS OF PLANNING

•Planning Is Goal Oriented

•Planning Is An Intellectual Process

•Planning Is All Pervasive

•Precedes All Managerial Functions

•Planning Is A Continuous Process

•It Is Flexible In Nature

•Directed Towards Efficiency

Jul 2012

*STEPS IN PLANNING PROCESS

STEP 1 Determination Of Objectives

STEP 2 Establishment Of Planning Premises

STEP 3 Selection of the Best Plan from the

Alternatives Available

STEP 4 Timing and Sequence of Operation

STEP 5 Estimation of Future Events

STEP 6 Follow Up Action

Jul 2012

*STEP 1 Determination Of Objectives

Determination of objectives is the first step in

planning process.

The objectives so determined decide the future

course of action.

Jul 2012

*STEP 2 Establishment Of Planning Premises

Planning premises are the assumptions for future

which provide a framework for the planning

process.

They form the very basis for action.

Business environments are uncertain.

Jul 2012

Planning Premises give a prediction about

future uncertainties of business environments.

On the basis of these forecasts are made and

future trends are indicated.

Jul 2012

*STEP 3 Selection of the Best Plan from

the Alternatives Available

All alternatives are found out, studied and

evaluated.

After careful consideration of all the points one

alternative is selected and decision is taken

according to the choice made.

Jul 2012

*STEP 4 Timing and Sequence of Operation

Timing is an essential consideration in any

planning.

Sequence of operation is also arranged carefully.

Priorities are fixed.

Jul 2012

*STEP 5 Estimation of Future Events

Some estimation is made for future events.

There are trend studies which indicate possible future

events.

Keeping some provision for margin of error, these

trend studies can be relied upon.

Experience, judgment and discretion also help in

estimating future events.

Jul 2012

*STEP 6 Follow Up Action

The plans so prepared are to be carried out.

Follow up action is also needed for seeing through

the plan during the course of implementation.

A regular follow-up action is both desirable and

needed for effective implementation and

accomplishment of tasks assigned.

CLASSIFICATION OF PLANS

STANDING PLANS SINGLE-USE PLANS

MISSION

OBJECTIVES

POLICIES

PROCEDURES

STRATEGIES

PROGRAMMES

PROJECTS

SCHEDULES

BUDGETS

STANDARDSRULES

Jul 2012

STANDING PLANS

*Formulated by

managers at different

levels and are meant

for repeated use as

and when the occasion

demands.

* May be used over a

long period of time.

SINGLE-USE PLANS

*Are used for only

specific periods.

Jul 2012

*TYPES OF PLANS

1. FINANCIAL OR NON-FINANCIAL PLANS

Plans that require financial resources are

considered financial plans

Plans relating to physical resources of an

organization are non-financial plans

Jul 2012

*2. INFORMAL AND FORMAL PLANS

Mere thinking by managers or contemplation

refers to informal plans

When informal plans are finalized and

prepared for implementation, it is considered to

be a formal plan

Jul 2012

*3. SPECIFIC AND ROUTINE PLANS

Any plan made with a particular objective is a

specific plan

Day-to-day normal activities require some type of

regular plan known as routine plan

Jul 2012

*4 .STRATEGIC AND FUNCTIONAL PLANS

Strategic planning is overall planning of the

enterprise’s objectives determined by top

management

A plan made in functional area like production,

purchase, marketing is referred to as functional

plan

Jul 2012

*5. LONG-RANGE OR SHORT RANGE PLAN

Short term plans refers to a period covering six to

twelve months

Long range plans usually involve a time interval

of between three and five years

Jul 2012

*6. ADMINISTRATIVE OR OPERATIONAL

PLANS

Administrative plans provide the base for

operative plans.

Administrative planning is done by top and middle

level management and operational planning is

done by lower level management